Fidelity Investment Funds Interim Report and Financial Statements For the six months ended 31 August 2019 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2019 Contents Director’s Report* 1 Statement of Authorised Corporate Director’s Responsibilities 2 Director’s Statement 3 Authorised Corporate Director’s Report*, including the financial highlights and financial statements Market Performance Review 4 Summary of NAV and Units 6 Accounting Policies of Fidelity Investment Funds and its Sub-funds 9 Fidelity American Fund 10 Fidelity American Special Situations Fund 12 Fidelity Asia Fund 14 Fidelity Asia Pacific Opportunities Fund 16 Fidelity Asian Dividend Fund 18 Fidelity Cash Fund 20 Fidelity China Consumer Fund 22 Fidelity Emerging Asia Fund 24 Fidelity Emerging Europe, Middle East and Africa Fund 26 Fidelity Enhanced Income Fund 28 Fidelity European Fund 30 Fidelity European Opportunities Fund 32 Fidelity Extra Income Fund 34 Fidelity Global Dividend Fund 36 Fidelity Global Enhanced Income Fund 38 Fidelity Global Focus Fund 40 Fidelity Global High Yield Fund 42 Fidelity Global Property Fund 44 Fidelity Global Special Situations Fund 46 Fidelity Index Emerging Markets Fund 48 Fidelity Index Europe ex UK Fund 50 Fidelity Index Japan Fund 52 Fidelity Index Pacific ex Japan Fund 54 Fidelity Index UK Fund 56 Fidelity Index US Fund 58 Fidelity Index World Fund 60 Fidelity Japan Fund 62 Fidelity Japan Smaller Companies Fund 64 Fidelity MoneyBuilder Balanced Fund 66 Fidelity MoneyBuilder Dividend Fund 68 Fidelity MoneyBuilder Income Fund 70 Fidelity Short Dated Corporate Bond Fund 72 Fidelity Special Situations Fund 74 Fidelity Sterling Core Plus Reduced Duration Bond Fund 76 Fidelity Strategic Bond Fund 78 Fidelity UK Select Fund 80 Fidelity UK Smaller Companies Fund 82 Fidelity MoneyBuilder Growth Fund** 84 Portfolio Statements* 85 Total Purchases and Sales 287 EU Securities Financing Transaction Regulation Tables 288 Further Information* 291 * These collectively comprise the Authorised Corporate Director’s (ACD) report. ** Fund Manager Reviews are not prepared for funds which are closed. 1 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2019 In the future additional funds or new classes of shares within the existing funds Director’s Report may be launched by the Authorised Corporate Director (“ACD”). Each fund has the investment powers equivalent to those of an undertaking We are pleased to present the interim report and financial statements for for collective investment in transferable securities (a UCITS) scheme as per the Fidelity Investment Funds (the Company), covering the six month period ended Prospectus. 31 August 2019. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities; but is included Shareholders are not liable for the debts of the Company. A shareholder is not for the purpose of illustration only. Investors should also note that the views liable to make any further payment to the Company after they have paid the expressed may no longer be current and may already have been acted upon purchase price of the shares. by Fidelity. The Company is governed by the requirements of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“OEIC Regulations”) and the Company and Status FCA’s Handbook of rules and guidance, specifically the Collective Investment The Company is an open-ended investment company with variable capital Schemes Sourcebook (“COLL”). As permitted by the COLL, the Company no incorporated in England and Wales under number IC8 and authorised by the longer holds Annual General Meetings. Financial Conduct Authority (FCA) on 7 April 1998. The Company has segregated liability status between funds. This means that The Company is structured as an umbrella company comprising various the assets of a fund belong exclusively to that fund and shall not be used to funds, each of which is operated as a distinct fund, with their own portfolio of discharge directly or indirectly the liability of, or claims against, any other investments. person or body, including the Company, or any other fund. The funds in which shares are currently available are: Remuneration Disclosure Fidelity American Fund The Fidelity International Remuneration Committee has established a Global Fidelity American Special Situations Fund Remuneration Policy to ensure the requirements of the UCITS Directive are met Fidelity Asia Fund at a global level for all of its UCITS management companies. The Remuneration Fidelity Asia Pacific Opportunities Fund Committee reviews the remuneration policy at least annually. The Directors of relevant management companies are responsible for the adoption of Fidelity Asian Dividend Fund the Global Remuneration Policy, for reviewing its general principles at least Fidelity Cash Fund annually, for overseeing its implementation and for ensuring compliance with Fidelity China Consumer Fund the relevant local legislation and regulation. The Global Remuneration Policy is consistent with and promotes sound and effective risk management and Fidelity Emerging Asia Fund is designed not to encourage risk-taking which is inconsistent with the risk Fidelity Emerging Europe, Middle East and Africa Fund profile of the funds. The Global Remuneration Policy is in line with the business Fidelity Enhanced Income Fund strategy, objectives, values and interests of the ACD and the funds and includes Fidelity European Fund measures to avoid conflicts of interest. Fidelity European Opportunities Fund During 2017 the Global Remuneration Policy was reviewed and changes were made to ensure compliance with the applicable European remuneration Fidelity Extra Income Fund requirements. The Global Remuneration Policy applies to all employees, with Fidelity Global Dividend Fund particular focus on staff whose professional activities have a material impact Fidelity Global Enhanced Income Fund on the risk profile of the ACD or the funds (the Material Risk Takers). The UCITS Material Risk Takers (“UCITS MRTs”) are individuals whose roles can materially Fidelity Global Focus Fund affect the risk of the management company or any UCITS Directive and Fidelity Global High Yield Fund guidance issued by the European Securities and Markets Authority. Fidelity Global Property Fund The aggregate total remuneration paid out to UCITS MRTs related to Fidelity Global Special Situations Fund FISL, considering all the existing delegation arrangements, in respect of Fidelity Index Emerging Markets Fund the performance period started 1 June 2018 and ended 30 June 2019 is EUR 8.88 million (GBP 7.97 million). This figure includes the amounts attributed Fidelity Index Europe ex UK Fund either to the FISL entity or to the UCITS funds that it manages. For any additional Fidelity Index Japan Fund information on the remuneration policy a copy of the summary Remuneration Fidelity Index Pacific ex Japan Fund Policy is available via https://www.fil.com. Fidelity Index UK Fund Holdings In other sub-funds within the same Company Fidelity Index US Fund There were no such holdings as at 31 August 2019 (2018: none). Fidelity Index World Fund Objectives Fidelity Japan Fund The broad aim of the Company is to provide investors with revenue and/or Fidelity Japan Smaller Companies Fund capital growth over the medium to long term. Fidelity MoneyBuilder Balanced Fund The aim of the equity funds is to provide investors with either a combination Fidelity MoneyBuilder Dividend Fund of revenue and long term capital growth or long term capital growth from diversified, actively and passively managed portfolios of securities in a wide Fidelity MoneyBuilder Income Fund range of stock markets. The revenue from those funds with a long term capital Fidelity Short Dated Corporate Bond Fund growth structure is expected to be low. The equity funds will invest primarily Fidelity Special Situations Fund in equities in the markets reflected in the title of each individual fund and in Fidelity Sterling Core Plus Reduced Duration Bond Fund companies established outside those markets but which derive a significant proportion of their earnings from those markets. Fidelity Strategic Bond Fund The aim of the bond funds is to provide investors with relatively high revenue Fidelity UK Select Fund with the possibility of capital gains. Fidelity UK Smaller Companies Fund The investment objective and a review of the investment activities of each fund during the period under review are included within the Fund Manager Reviews. 2 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2019 Changes to the prospectus For the six months ended 31 August 2019 the following significant changes were made to the Prospectus and Instrument of Incorporation: • MoneyBuilder Growth closed on 21 June 2019 and its assets were merged into the Fidelity UK Opportunities Fund. Consequently, the financial statements have been prepared on a basis other than going concern. • The Fidelity MoneyBuilder Income Fund launched an I Income and I Accumulation share class on 26 June 2019. Statement of Authorised Corporate Director’s (ACD) Responsibilities in relation to the Interim Report and Financial Statements of the Company The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) and Collective Investment Schemes sourcebook (“COLL”) require the ACD to prepare financial statements